Many Americans are struggling financially due to the coronavirus pandemic. An estimated 205 million people are at risk of their utilities being disconnected, and many more are in jeopardy of their vehicles being repossessed and their homes being foreclosed. A significant number of Americans have been laid off or experienced a reduction in their work hours, causing them not to be able to pay their bills on time. Recovering from the coronavirus shutdowns will take time, but Americans who are struggling do have options. One of those options is to file for bankruptcy. Filing for Chapter 13 bankruptcy is a viable option for helping you get back on your feet financially. What happens after you finish paying off a Chapter 13 bankruptcy?

Some of the questions you will likely ask yourself before deciding to file bankruptcy include:
  • How much do you owe on your credit cards and are you only making minimum payments?
  • Are you using credit cards wisely or using them to pay for necessities?
  • Do you feel like your finances are out of your control?
  • Are you being contacted by bill collectors on a regular basis?
  • Are you in danger of losing your home to foreclosure?
If your answer to one or more of these questions is yes, then the decision to file bankruptcy may be obvious. However, the challenge may be whether the timing of a bankruptcy filing is right. Timing matters in some cases because filing at the wrong time could mean you lose assets you might otherwise be able to keep, and because filing at the wrong time could hamper negotiations with creditors.
Cibik & Cataldo: Philadelphia Bankruptcy Lawyers